Natural gas prices basically went nowhere on Monday as the August 15 contract fell to a 2.735 early morning low only to rally back higher into the close settling at 2.789, up .013.
The market continues to flat line in a sideways trading
range alternating between longer term support at 2.569-2.588 and resistance at
the lower-3.000 level.
A breakout from this range is needed to determine the next
direction for the market. It is expected that the eventual breakout will
come below 2.569-2.588 weekly low support keeping the market in a bearish
downtrend.
If weekly low support is broken, 2.440-2.450 and 2.230-2.250
will become the next longer term support levels.
If the market can rally back higher, last week’s 2.951 high
extending up to the 2.977 June high will be the first area of resistance
followed by the 200 day moving average currently at 3.075.
Technical Indicators: Moving Average Alignment –
Neutral-Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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